Assume the total real income of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per
Capita income has
A) increased by $25 per person.
B) decreased by $25 per person.
C) increased by $533 per person.
D) decreased by $533 per person.

Question

Quizplus · Accepted Answer

The initial per capita income is $8 billion / 14 million = $571.43. The new per capita income is $8.2 billion / 15 million = $546.67. The decrease in per capita income is $571.43 - $546.67 = $24.76, which rounds to $25 per person.

Assume the Total Real Income of a Developing Country Increases